Personal Agreements and Deeds

What this covers

Most private agreements in Bangladesh are governed by the Contract Act 1872: there must be free consent, lawful consideration and a lawful object between competent parties. A well drafted written document proves the terms, fixes timelines and remedies, and makes later recovery or legal notice far easier. We prepare loan agreements, tenancy and rent agreements, memoranda of understanding, family settlement agreements, undertakings (অঙ্গীকারনামা), settlement and release deeds, and agreements with contractors or developers for personal property. Business contracts and company documents are handled by our sister platform LegalDesk.bd.

Stamp duty and notarisation

Under the Stamp Act 1899 most instruments must be stamped at the rate in Schedule I, as amended by Finance Acts, before or at the time of signing. An unstamped or under-stamped document cannot be admitted in evidence until the duty and a penalty are paid (section 35). Agreements, bonds, leases and settlements each have their own entries, and duty on some depends on value, so the correct article matters. Notarisation before a Notary Public adds proof of identity and signing, which helps with banks, embassies and later disputes, but it does not replace stamping or registration.

When registration is compulsory

Section 17 of the Registration Act requires registration of documents that create, transfer or extinguish rights in immovable property worth Tk 100 or more, gifts of immovable property, leases of immovable property from year to year or for more than one year, and partition deeds. Section 17A requires contracts for the sale of immovable property to be registered, within 30 days of signing. An unregistered document that should have been registered does not affect the property and cannot be used to prove the transaction, although it may be used for limited collateral purposes.

Common personal agreements

Loan agreements should record the amount, how it was paid (ideally by bank transfer), repayment dates and any security; a post dated cheque alone is weak evidence of the underlying debt. Tenancy agreements should reflect the House Rent Control Act 1991 on advance and rent receipts. A family settlement can simply record an arrangement already made, but if it itself divides land it usually needs registration as a partition deed. An MoU can be binding or not, depending on its wording, so say which parts are binding. An undertaking is a one sided promise and is only as enforceable as the consideration and clarity behind it.

What helps

• Names, addresses and NIDs of all parties and witnesses
• The key terms: amounts, dates, property details, obligations and what happens on breach
• Evidence of payments already made, such as bank transfers or receipts
• For property: deed, khatian and mutation details
• Any draft, messages or earlier agreement between the parties

Where it is handled, and how long it takes

Drafting is done in chamber, commonly within a few working days. Stamp paper or e-stamping is purchased before signing; notarisation is usually same day; compulsory registration is at the Sub-Registry office for the property. If a dispute arises, the forum depends on the claim, such as a civil court for recovery or specific performance, or mandatory mediation where it applies.